Wiley CPAexcel Exam Review 2014 Focus Notes: Regulation

Module 33: Regulation of Business Employment, Environment, and Antitrust

ENVIRONMENTAL LAW

Laws passed to protect the environment.

• Under the National Environmental Policy Act (NEPA), all federal agencies are required to consider the impact upon the environment in making decisions
• The Environmental Protection Agency (EPA) coordinates and administers environmental policies

Recommendations for actions affecting the environment must be accompanied by an environmental impact statement which

• Describes the environmental impact of proposed actions
• Discusses effects that cannot be avoided
• Discusses alternatives to the proposed actions
• Indicates differences between short-term and long-term effects
• Provides details of irreversible commitments of resources

The Clean Air Act

Regulates air pollution from mobile sources, e.g., automobiles and stationary sources, e.g., factories. Under the Act

• Factories with toxic air pollutants must use the best available emission controls
• Penalties may be up to $25,000 per day

In addition

• The EPA can assess a penalty equal to the violator's benefit
• Private citizens can sue violators
• Knowing violators may be subject to criminal liability

The Federal Water Pollution Control Act (Clean Water Act)

Protects navigable waterways and wetlands regulating discharges of heated water by nuclear power plants and dredging of wetlands. It is intended to

• Make water safe for swimming
• Protect fish and wildlife
• Eliminate water pollution

Sanctions against violators include ...